HERMÈS - 2018 Registration document

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Corporate social responsibility

People: teams

Seniority pyramid Average seniority is nine years and 43% of the Group’s total employees have been with the Group for less than five years, resulting from fast growth in recent years. The Group encourages the development of skills and long careers. More than one-third of the staff have been with the Group for more than 10 years.

In 2018, the frequency rate of workplace accidents with stoppage for the Group as a whole stood at 8.4 for a severity rate of 0.46. This calculation is based on the total number of actual hours worked. It is difficult to interpret because of the variety of métiers in the Group. In France, the frequency ratewas 12.37with a severity rate of 0.55, com- pared to 14.8 and 0.75 last year. Our industrial workforce represents 69% of our workforce in France, and therefore impacts these rates. The rates for the main métiers concerned (leather and crystal) are below the rates for their industries. Looking at figures for International alone, the frequency rate was 3.2 and the severity rate was 0.3. Organisation of working time Each entity manages its working time in compliance with the regulations in force and on the basis of the particularities of its own activity, in an effort to balance private/professional life, in particular by implemen- ting variable working times for French entities. Ninety-five percent of employees work full-time ; there are 704 part-time employees. Various working time flexibility schemes have been established. For exa- mple, for leather goods, (47% of the workforce in France), craftsmen and women organise themselves at each workshop according to flexible schedules. Given that 80% of employees are either craftsmen and women or work in the stores, teleworking is less significant than in other industries. It is examined on a case-by-case basis, according to the needs of the departments. Maintaining diversity of talents is the foundation of the House’s wealth and creativity. The diversity policy is overseen by amember of the Executive Committee in charge of organisational governance. It is based on the values and ethics of the House and on the actions overseen by the Group’s human resources department. Policy The Hermès Responsible Employer policy implemented in the Group aims to develop actions to enhance its employees’ development while boosting the House’s economic performance. Attaining these two inter- linked and complementary objectives involves a range of initiatives to promote responsible integration and responsible management. Drawing on the conviction that diverse talent is a source of wealth, creati- vity and innovation, Hermès strives to facilitate the integration of diverse talent by developing practical actions in favour of vulnerable people, in particular those with disabilities or the long-term unemployed, senior citizens, and people from visible minorities or disadvantaged areas. 2.3.2.1 2.3.2 CHALLENGE: MAINTAINING DIVERSITY

Over 20 years

11%

9%

15 to 20 years

14%

10 to 15 years

5 to 10 years

22%

13%

3 to 5 years

18%

1 to 3 years

12%

1 year and less

Absenteeism (France) In France, the absenteeism rate was 4.1%, is stable compared to last year. Absenteeism is calculatedusing theaccumulatedhours of absence for the following reasons over a period less than or equal to 90 conse- cutive days: illness and occupational illness; absence as a result of a workplace or commuting accidents; and unjustified or unauthorised absences. Changes in absenteeism are systematically monitored and analysed by entity in order to identify causes and propose action plans. Return-to-work interviews are one of the tools that HR departments use for improvement. This type of measure helps to encourage dialogue and to better understanding of the causes of the absence while respecting medical confidentiality. Managers are also trained in managing returns to work based on the type of absence, which is a key element for limiting their frequency. Moreover, this monitoring system has led certain com- panies to establish short- and medium-term objectives with regard to absenteeism. These objectives are accompanied by initiatives focusing on an improvement of working conditions, development of versatility or manager training regarding the management of absenteeism. As such, the adopted measures include communication, awareness-raising and prevention actions (vaccinations, presence of a doctor on the sites, etc.), but also control, in order to increase the accountability of the employees and managers. Moreover, based on the demographics of certain sites, specific actions have been implemented in order to support maternity under the best possible conditions. For example, these specific action plans may involve adapting the work station, or implementing prevention measures intended to allow pregnant women to remain at work, if they so desire, until the start of their maternity leave. Workplace accidents The diversity of the Group’s métiers (as it is both a manufacturing and trading company), and its geographic locations (France and overseas) make it difficult to provide overall analyses and comparisons of work- place accident statistics. Health and safety is of course a key priority for all of the House’s managers.

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL